Customs By-law No. 2100221

The by-law relies on a small set of controlling concepts from its text. First, prescription "UNDER SECURITY" means that the goods specified are subject to a security requirement, the nature of which is set by reference to section 42 of the Customs Act 1901; the by-law itself defines "security" using that cross-reference (preamble; Schedule, Item 38(2)). Second, the by-law imports tariff classification as its mechanical determinant: coverage is triggered where goods "would be classified under a heading or subheading of Schedule 3" to the Customs Tariff Act 1995 listed in either Table 1 or Table 2 (Schedule, Item 38(2)). Third, use as "original equipment" in the manufacture or assembly of a "particular motor vehicle" is an eligibility condition in both tables; the precise statutory text places emphasis on intended end-use in original equipment manufacture or assembly (Schedule, Item 38(2)(a)-(b)).

Gross vehicle weight, abbreviated and defined as "g.v.w.", is a key threshold concept: the Tables apply to vehicle components intended for vehicles having a manufacturer's specified maximum design weight capacity, with Table 1 applying where g.v.w. exceeds 3.5 tonnes, and Table 2 applying where g.v.w. exceeds 3.5 tonnes but is less than 4 tonnes (Schedule, Item 38(2); Item 38(5)(k)). The by-law also introduces a treatment of "use" that extends to goods that are "used up" (for example damaged or destroyed), subject to Collector satisfaction that the goods are not suitable for use as components (Schedule, Item 38(3)).

Exclusions are explicit and detailed. Paragraph 4 excludes certain sub-assemblies that incorporate combinations of specified major components, excludes cabs other than "bare cabs" and chassis frames fitted with attachments other than specified brackets or towing hooks, and lists a range of discrete parts and components that are not captured even if their tariff headings appear in the Tables (Schedule, Item 38(4)(a)-(c)). To reduce ambiguity, the by-law supplies definitions for terms such as "air-brake equipment", "bare cabs", "brake drums", "cab seats", "clutches", "engine" (with an express exclusion for goods incorporating transmission equipment), "gearboxes", "propeller shaft assemblies", "radiators", "suspension components", and "g.v.w." (Schedule, Item 38(5)(a)-(k)).

Finally, the by-law clarifies that references to the Customs Tariff Act 1995 mean that Act "as amended or proposed to be altered by a Customs Tariff alteration proposed in the Parliament" (Schedule, Item 38(6)). The Tables themselves list specific Schedule 3 tariff headings and subheadings; the Tables also contain an express footnote excepting vehicles of cylinder capacity not exceeding 1 000 cm3 for certain entries (Schedule, Item 38, Tables 1 and 2, footnote).

These concepts operate together: tariff classification and declared intended use determine whether an import falls within the prescription; g.v.w. thresholds further segment the covered goods; explicit exclusions and the collector's discretion regarding "use" and suitability narrow or expand the practical perimeter.

The by-law expressly affects importers of vehicle components that meet the textual conditions. The instrument defines "security" as security required from the importer under section 42 of the Customs Act 1901, so the financial obligation falls on importers of the prescribed goods (preamble; Schedule, Item 38(2)). The Collector of Customs is the decision-maker who must be "satisfied" both about the adequacy of security and about suitability of goods in certain circumstances, so Customs administration staff are the agency actors who exercise substantive discretion under the instrument (Schedule, Item 38(3); preamble).

More specifically, any person or business importing goods that would be classified under the listed Schedule 3 headings and subheadings, and that are for use as original equipment in the manufacture or assembly of a particular motor vehicle with the specified g.v.w. parameters, is within scope (Schedule, Item 38(2)). Suppliers and manufacturers who export components into Australia will be affected via their contracting counterparties, because the importer is the named party required to provide security. Customs brokers, freight forwarders and legal advisers who manage import clearances will be engaged in implementation because release of goods will depend on satisfying the Collector as to security and intended use.

The by-law also has impact on vehicle manufacturers and assemblers who procure original equipment components from overseas for assembly in Australia. If components intended for a vehicle with a g.v.w. exceeding the thresholds are classified under the listed tariff headings, those imports will trigger the security requirement, potentially increasing upfront cash or collateral needs for manufacture or assembly projects (Schedule, Item 38(2)). Persons importing goods that are excluded by the detailed list in paragraph 4, such as accumulators (batteries), tyres, wheels, certain radiators, cab seats and the other enumerated items, are not subject to the prescription for those items even if tariff headings overlap (Schedule, Item 38(4)(c)).

Finally, the by-law revokes two prior by-laws (Customs By-law No. 1300584 and Customs By-law No. 1700051) which implies that parties previously operating under the earlier instruments must now follow the terms of this by-law from 1 January 2022 (preamble, paragraphs 1-3; signature and commencement clause).

Duties created by this by-law are functional and limited. The primary duty is on the importer to provide "security" to the satisfaction of the Collector where the goods fall within the prescription. The by-law defines "security" by reference to the Collector's powers under section 42 of the Customs Act 1901, so the importer must meet whatever form and sufficiency standard the Collector requires under that statutory provision (preamble; Schedule, Item 38(2)). The instrument does not itself prescribe the form or quantum of security; it leaves that determination to the Collector in exercise of section 42 powers.

Another duty is one of accurate tariff classification: coverage is triggered where the goods "would be classified" under the specific headings or subheadings of Schedule 3 to the Customs Tariff Act 1995 listed in Tables 1 and 2 (Schedule, Item 38(2)). Importers must therefore determine or establish that their goods align with the listed tariff headings. They must also ensure that goods are genuinely for "use as original equipment in the manufacture or assembly of the cab/chassis or drivable chassis of a particular motor vehicle" (Schedule, Item 38(2)(a)-(b)), and, when relevant, that the vehicle's g.v.w. meets the stated thresholds (Schedule, Item 38(2); Item 38(5)(k)).

Rights under the by-law are concentrated in the Collector's discretion. The Collector has the right to be satisfied as to the adequacy of security and the Collector has the right to assess whether goods that are "used up" would not be suitable for use as motor vehicle components before treating them as within scope (Schedule, Item 38(3)). The instrument does not confer substantive rights on importers beyond the ability to provide security and to make representations; it does not prescribe review or appeal mechanisms within the by-law text itself.

The by-law grants importers and their agents the ability to demonstrate that specific goods fall within an exclusion. Paragraph 4 contains several explicit carve-outs and definitions are provided in paragraph 5 to reduce uncertainty over which items are excluded (Schedule, Item 38(4)-(5)). For example, "bare cabs" are defined narrowly, and cabs other than bare cabs are excluded, which provides a clear line of compliance for certain imports where the goods are fitted or trimmed (Schedule, Item 38(4)(b)(i); Item 38(5)(b)).

Compliance will therefore require importers to satisfy both classification and intended use conditions; the Collector determines whether those satisfactions are met, and the Collector determines the sufficiency of security under s42. The by-law itself does not specify timelines for Collector decisions, nor does it set out appeal procedures; the relevant procedural rights and remedies lie, if at all, in the broader statutory framework to which the by-law refers.

The by-law does not itself state criminal penalties, fines or administrative sanctions. Instead the instrument creates an operational compliance hook by prescribing the listed goods "UNDER SECURITY", and by defining "security" via a reference to section 42 of the Customs Act 1901 (preamble; Schedule, Item 38(2)). That cross-reference is the legal mechanism by which enforcement and administrative measures will be applied, because compliance with the security requirement is the condition the by-law imposes.

Because the by-law relies on the Collector's exercise of s42 powers to determine what security is required and whether it is satisfactory, enforcement in practice will be administered through the Collector's exercise of customs control powers at importation. The text of the by-law leaves the form, amount and procedural consequences of failing to provide acceptable security to the Collector's exercise of the referenced statutory power; the by-law does not itself instantiate additional civil or criminal sanctions beyond that mechanism (preamble; Schedule, Item 38(2)). The instrument contains no separate enforcement procedures, infringement notice regime, or discrete penalty schedule.

The Collector's discretion over "use" in paragraph 3 is an enforcement lever. Paragraph 3 expressly allows the Collector to treat goods that are "used up" as falling within the by-law only if the Collector is "satisfied that the particular goods would not be suitable for use as motor vehicle components" (Schedule, Item 38(3)). That clause creates a factual gate through which damaged or destroyed goods may pass only after Collector assessment, so practical enforcement will include Customs assessment of suitability.

The by-law also creates practical enforcement implications through its reliance on tariff classification. The trigger is whether goods "would be classified under a heading or subheading of Schedule 3" specified in the Tables (Schedule, Item 38(2)). Disputed classifications or retrospective reclassification could therefore have enforcement significance, because a post-importation reclassification could mean the importer was subject to the security requirement at the time of import. The by-law, however, does not itself articulate consequences of misclassification or non-provision of security; those consequences are determined by the broader Customs Act and tariff regime which the by-law references.

In short, enforcement is effected by the Collector's exercise of existing Customs Act powers rather than by additional penalties in the by-law. The by-law centralises Collector discretion and relies on security provision as the operational control point, with practical enforcement actions arising from standard customs processes rather than from novel sanctions created within the by-law.

The by-law is explicitly cross-referential. It is made under section 271 of the Customs Act 1901 (preamble), and it defines "security" by reference to security required from the importer under section 42 of the Customs Act 1901 (preamble). The by-law operates to prescribe goods for the purposes of item 38 of Schedule 4 to the Customs Tariff Act 1995, and it therefore imports tariff classification rules and Schedule 3 headings and subheadings as mechanical determinants of coverage (Schedule, Item 38(2)). Paragraph 6 states that references to the "Customs Tariff Act 1995" mean that Act as amended or proposed to be altered by a Customs Tariff alteration proposed in the Parliament, which imports potential future tariff alterations into the by-law's reach (Schedule, Item 38(6)).

The practical legal interaction is therefore threefold. First, customs security arrangements under s42 of the Customs Act 1901 are the enforcement hook; the Collector's exercise of that statutory power will be central to implementation. Second, tariff classification under the Customs Tariff Act 1995 Schedule 3 headings and subheadings is the definitional hook; classification outcomes determine whether specific imported goods fall within the by-law's prescription. Third, the by-law is a subordinate instrument made under the Customs Act 1901, and it revokes two earlier by-laws, so it changes the applicable subordinate law landscape for those importing vehicle components as of its commencement (preamble, paragraphs 1-3; Schedule, Item 38(6)).

The by-law does not expressly reference any other Commonwealth statutes, regulatory instruments, or state laws. It does not itself modify or prescribe rates of duty; its function is confined to imposing a security condition on specified imports. Any procedural rights, appeals, or offences deriving from failure to meet the security requirement must be sought in the broader Customs Act or other statutory instruments, as the by-law does not set out such processes.

Because the by-law depends on tariff headings in Schedule 3 to the Customs Tariff Act 1995, it will interact practically with tariff classification mechanisms, advance rulings, customs valuation rules, and any future tariff alterations. The by-law’s clause 6 explicitly contemplates that proposed tariff alterations before Parliament will affect its operation, meaning that pending tariff changes can alter which goods fall under the prescription without further amendment to the by-law itself (Schedule, Item 38(6)).

The instrument records immediate changes and cross-references to prior subordinate instruments. It revokes Customs By-law No. 1300584 and Customs By-law No. 1700051 (preamble, paragraphs 1-2). It then makes the new by-law set out in the Schedule. The by-law itself is dated 10 December 2021, signed by the Comptroller-General’s delegate Alison Neil, and it specifies commencement on 1 January 2022 (preamble; signature and commencement clause).

There is no further explicit amendment history recorded within the by-law text. The by-law’s paragraph 6 treats the Customs Tariff Act 1995 as including proposed Parliamentary alterations, which allows the by-law’s effective scope to move as tariff headings are amended or proposed to be amended, without a separate by-law amendment (Schedule, Item 38(6)). The instrument therefore opts for a form of dynamic reference to the Customs Tariff Act as amended or proposed to be altered, rather than locking in a fixed list of tariff provisions independent of ongoing tariff law changes.

Because the by-law revokes two prior by-laws, parties who were operating under those older instruments should note that the older texts no longer apply from the commencement date. The by-law does not record prior amendment dates of the revoked instruments; it only records their revocation. The by-law itself is a standalone subordinate instrument and contains its operative Schedule with numbered paragraphs and two tariff tables; any future amendment would require a further instrument made under the enabling provision in the Customs Act 1901.

No saving or transitional provisions are included in the by-law text. The commencement provision is absolute: "This by-law commences on 1 January 2022" (signature and commencement clause). Any operational transition from the revoked by-laws to the new one therefore begins on that date, unless other instruments or departmental practice provide transitional arrangements outside the by-law text.

The by-law contains no references to litigation, cases, or decisions. It names no judicial or administrative determinations, and it does not cite precedent. The text is administrative and prescriptive; it relies on statutory cross-references rather than adjudicative history to set its terms. The instrument does not record any challenges, appeals, or prior rulings, and it does not reference any legal proceedings in its preamble or Schedule.

The absence of litigation references in the instrument means that any legal interpretation, dispute over classification, challenge to Collector satisfaction decisions, or contest of security requirements would rely on the broader statutory framework and jurisprudence under the Customs Act 1901 and the Customs Tariff Act 1995, rather than on guidance from this by-law itself, because the by-law supplies definitions and operative triggers but not adjudicative commentary. The text’s repeated delegation to the Collector's satisfaction,for security and for assessment of "used up" goods,means that contested applications will likely turn on factual findings and the exercise of administrative discretion. Any litigation arising would therefore need to engage the Collector's exercise of the power referenced in the by-law, and would proceed under the usual remedies applicable to administrative decisions.

Because no cases are named in the instrument and no litigation history is provided, there is no internal source material on which to base a history of adjudication or appeals. Users seeking precedential guidance must therefore consult decisions under the Customs Act and tariff classification jurisprudence external to this by-law.

Several practical points in the by-law can give rise to uncertainty or operational difficulty, because the instrument depends on cross-references, factual assessments, and specific exclusions. First, tariff classification is decisive. The by-law prescribes goods only where they "would be classified under a heading or subheading of Schedule 3" specified in the Tables (Schedule, Item 38(2)). That phrase can generate disputes over classification, and classification errors may alter whether security was required at the time of import. The by-law does not itself provide classification guidance beyond listing the tariff codes, so importers must rely on tariff rules, rulings and, where necessary, the Collector's view.

Second, the Collector's discretionary satisfaction is central and potentially indeterminate. The by-law defines "security" by reference to the Collector's satisfaction under s42 and requires the Collector to be "satisfied" in relation to "used up" goods as to unsuitability for component use (preamble; Schedule, Item 38(3)). The instrument does not specify criteria, timeframes or appeal processes in respect of that satisfaction, so the Collector's procedural approach and evidentiary expectations will drive outcomes.

Third, the scope conditions combine tariff headings, intended end-use as "original equipment", and g.v.w. thresholds. Each of those limbs is a separate compliance gate. For instance, a component classified under a listed heading may nevertheless be outside the by-law if not for "original equipment" use, or if destined for vehicles with different g.v.w. specifications (Schedule, Item 38(2); Item 38(5)(k)). Determining whether imports are "for use as original equipment in the manufacture or assembly of the cab/chassis or drivable chassis of a particular motor vehicle" may require documentary evidence and factual inquiry.

Fourth, paragraph 4 contains multiple exclusions that may overlap with listed tariff headings. The by-law excludes a list of discrete items such as accumulators, tyres, radiators (and parts thereof), cab seats, propeller shaft assemblies, wheels, and others (Schedule, Item 38(4)(c)). The same or related goods may appear within broader Schedule 3 headings, creating the potential for disputes about whether a specific imported good is an excluded article or a covered article; the by-law attempts to minimise this with definitions in paragraph 5, but practical disputes remain possible.

Fifth, the Tables contain a footnote excluding vehicles of cylinder capacity not exceeding 1 000 cm3 for certain entries. Importers and Customs officers must therefore confirm the engine cylinder capacity of the "particular motor vehicle" to decide whether that footnote applies (Schedule, Item 38, Tables 1 and 2, footnote).

Finally, paragraph 6 imports proposed tariff alterations into the by-law. This means that a tariff change proposed in Parliament can affect which goods are prescribed without a separate by-law amendment (Schedule, Item 38(6)). That dynamic reference can create regulatory uncertainty for importers monitoring future tariff amendments.

Taken together, the by-law’s dependence on tariff classification, Collector satisfaction, intended end-use, g.v.w. thresholds and granular exclusions creates several operational "gotchas" where documentation, pre-import engagement with Customs, and careful classification will be determinative.

The by-law imposes an obligation on importers to provide security acceptable to the Collector when importing prescribed goods. Compliance therefore requires a sequence of concrete steps aligned to the by-law’s triggers and exclusions.

1. Classification check. Determine whether the goods "would be classified" under any of the Schedule 3 headings or subheadings listed in Table 1 or Table 2 (Schedule, Item 38(2)). Use internal product specifications, tariff nomenclature and, if necessary, an advance tariff ruling or specialist customs advice to confirm classification, because classification outcomes determine whether the security requirement is triggered.

2. Confirm intended end-use. Ensure the import documentation and commercial contracts demonstrate that the goods are "for use as original equipment in the manufacture or assembly of the cab/chassis or drivable chassis of a particular motor vehicle" (Schedule, Item 38(2)). Prepare evidence such as purchase orders, manufacturer specifications, end-user declarations and assembly plans that link imported components to the specific vehicle models and their assembly role.

3. Verify g.v.w. thresholds. For the relevant vehicle model, obtain manufacturer documentation showing the gross vehicle weight, as defined by the by-law, because Table 1 applies to vehicles with a g.v.w. exceeding 3.5 tonnes and Table 2 to vehicles with a g.v.w. exceeding 3.5 tonnes but less than 4 tonnes (Schedule, Item 38(2); Item 38(5)(k)). Where the cylinder capacity footnote applies, obtain engine cylinder capacity data to determine whether the footnote exemption is available (Schedule, Item 38, Tables 1 and 2, footnote).

4. Check exclusions. Review paragraph 4 and definitions in paragraph 5 to see if the goods fall within any excluded categories such as sub-assemblies incorporating combinations of major components, cabs other than bare cabs, chassis frames fitted beyond the allowed attachments, or any of the enumerated items in paragraph 4(c) (Schedule, Item 38(4)-(5)). If goods are excluded, the security requirement will not apply.

5. Prepare to provide security. Because "security" is defined as security required from the importer to the satisfaction of the Collector under section 42 of the Customs Act 1901, liaise with the Collector or authorised Customs brokers to understand acceptable forms of security, evidentiary expectations and procedural steps. Collateral, bank guarantees, or other forms may be required depending on the Collector’s determination; the by-law does not specify the form or amount (preamble; Schedule, Item 38(2)).

6. Document "used up" cases. If goods are damaged, destroyed or otherwise "used up", prepare documentary proof to demonstrate unsuitability for use as motor vehicle components, because paragraph 3 makes acceptance of such treatment contingent on the Collector being satisfied (Schedule, Item 38(3)).

7. Engage before importation where possible. Given the Collector's discretion and the centrality of classification, arrange pre-import contact or advice with Customs, or seek an advance ruling on classification and security obligations from the relevant authority, so that security arrangements and release processes are clear before goods arrive.

8. Retain records. Maintain contemporaneous records of classification analyses, supplier and manufacturer documents, contracts evidencing intended original-equipment use, g.v.w. data, and communications with Customs. These will be the practical materials needed to obtain Collector satisfaction and to respond to any post-import compliance checks.

9. Use specialist advisers. Given the overlap between tariff classification, customs security and technical vehicle specifications, consider using customs brokers, trade lawyers or accountants with customs experience to prepare submissions to the Collector and to manage security instruments.

10. Monitor tariff changes. Because paragraph 6 brings proposed tariff alterations into the by-law’s operation, track tariff amendment proposals and parliamentary activity that could expand or contract the list of Schedule 3 headings relevant to the by-law (Schedule, Item 38(6)).

Taken together, compliance is procedural and documentary: confirm classification and intended use, confirm g.v.w. thresholds, check exclusions, and arrange security acceptable to the Collector prior to or at the point of importation. The by-law gives the Collector the substantive discretion to accept or reject security or to classify "used up" goods as covered, so compliance processes should be oriented to satisfying that administrative standard.